Yahoo! announced an extension to its search agreement with Microsoft, under new conditions. Under the ten-year agreement signed in 2009 to use Microsoft’s search services, Yahoo had the right to request changes mid-way through the deal. Yahoo CEO Marissa Mayer said in a statement that she worked closely with Microsoft CEO Satya Nadella on amending the agreement so that the company can “enhance our user experience and innovate more in our search business”.
Under the new terms, Yahoo will have increased flexibility notably in the mobile market, where it has been working to improve its market position. The company will be able to change its search experience on any platform, as the partnership is non-exclusive for both desktop and mobile. Yahoo will continue to serve Bing ads and search results for a majority of its desktop search traffic. In addition, the companies are dividing up ad sales, so Microsoft will become the exclusive seller of ads delivered by its Bing Ads platform. Yahoo will hold on to sales over its own Gemini ads platform.
The main licensing terms of the agreement remain the same: Microsoft pays Yahoo a percentage of Bing Ads revenue delivered from Yahoo searches.